A string of new moves has demonstrated that Shenzhen is seeking to become a blockchain innovation powerhouse, Xinhua News Agency said in a report yesterday.
Blockchain, a digital ledger system, uses sophisticated cryptographic technologies to create a permanent, unchangeable and transparent record of transactions.
China is embracing blockchain, an underlying technology with a wide range of applications, and sees it as the new frontier of innovation for industries ranging from finance to manufacturing and energy. Xi Jinping, general secretary of the Communist Party of China Central Committee, highlighted blockchain last month as a core technology, urging more efforts to speed up the development of blockchain technology and industrial innovation.
A cross-departmental information and intelligence exchange platform was jointly launched by the municipal tax bureau, public security bureau, Shenzhen Customs and the People’s Bank of China Shenzhen Central Branch on Thursday, Xinhua said. The platform uses blockchain technology to prevent and crack down on criminal activities involving tax evasion, Zhang Guojun, head of the tax bureau, told Xinhua. Blockchain technology ensures that information shared on the platform is verifiable and unchangeable and can be automatically cross-checked and processed.
Since October 2018, Shenzhen has issued more than 10 million blockchain-enabled electronic invoices in an effort to crack down on fake invoices, which are used in tax evasion and embezzlement.
The blockchain-based e-invoice system jointly developed by the Shenzhen tax authorities and Tencent has been used by more than 7,600 enterprises and has issued e-invoices involving more than 7 billion yuan (US$994 million).
Li Maocai, Tencent’s general manager of blockchain operations, said the system ensures that every step, from the issuance of an invoice to the use of an invoice for reimbursement and accounting, can be traced, effectively preventing forgery and fraud.
Analysts say blockchain, along with artificial intelligence, 5G and other new IT technologies, is expected to become part of the infrastructure of the digital economy, and the increasing integration with the real economy will give rise to huge possibilities, according to Xinhua.
A financial blockchain ally initiated by WeBank and more than 20 other institutions in 2016 has developed an open-source community with more than 10,000 members and more than 500 enterprises participating. The community has developed more than 60 application cases in production scenarios.
Since the People’s Bank of China Shenzhen Central Branch launched the Phase I project of the trade financing blockchain platform in September 2018, more than 30,000 deals have been linked to the system and over 5,000 transactions involving about 75 billion yuan have been completed. The platform records the crucial documents and major processes related to trade financing, enabling participants to gain access to genuine information quickly and at lower financing costs.
“With the deeper integration of blockchain into society and life, the cost of trust will be greatly reduced. Blockchain will also become an effective tool in social governance,” Ma Zhitao, vice president of WeBank, was quoted by Xinhua as saying. In the future, blockchain will greatly improve the efficiency of communications between enterprises and government, between enterprises and enterprises, and between enterprises and individuals, while significantly reducing the cost of such communications, he added.
Charles Liu, founder and CEO of Shenzhen MobiusHacker Raspberrypi Intelligent Robotics, told China Daily that Xi’s remarks showed the country’s determination to support technological innovation and industrial transformation.
“Currently, blockchain is in an early stage of development,” Liu said. “Blockchain will definitely flourish in the future, which will empower the real economy and improve people’s livelihoods.”
With its wide range of applications, blockchain is expected to bring innovation to a variety of sectors, including finance, supply chain management, industrial Internet, energy and copyright, according to a report by Evergrande Think Tank.
Blockchain can help traditional financial institutions reduce operational costs, and with the support of such technology, individuals will be able to conduct transactions in a safe environment, the report said.
Liu told China Daily that China is at the forefront of the global blockchain field, especially in finance applications, the trade of commodities and food traceability.